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Improving Service
Quality and Productivity
Chapter 14 - 1
Overview of Chapter 14
Integrating service quality and productivity strategies
What is service quality?
The Gaps Modela conceptual tool to identify and
correct service quality problems
Measuring and improving service quality
Defining and measuring productivity
Improving service productivity
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User-based:
Value-based:
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Components of Quality:
Manufacturing-based
Performance: Primary operating characteristics
Features: Bells and whistles
Reliability: Probability of malfunction or failure
Conformance: Ability to meet specifications
Durability: How long product continues to provide value to
customer
Serviceability: Speed, courtesy, competence
Esthetics: How product appeals to users
Perceived Quality: Associations such as brand name
Slide 2007 by Christopher Lovelock and Jochen Wirtz
Chapter 14 - 7
Components of Quality:
Service-based
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Poor quality
Perceived performance ratings < expectations
Good quality
Perceived performance ratings > expectations
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Source:Shohreh A. Kaynama (2000), A Conceptual Model to Measure Service Quality of Online Companies: E-qual, in Developments in Marketing
Science, Harlan E. Spotts and H. Lee Meadows, eds., Proceedings of the Academy of Marketing Science, Vol. 22, pp. 4651. For more information
pertaining to online service quality see A. Parasuraman, Vlerie A. Zeithaml, and Arvind Malhotra (2005), E-S-QUAL: A Multiple-Item Scale for Assessing
Electronic Service Quality. Journal of Service Research, Vol. 7. issue 3. pp. 213234.
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Other Considerations in
Service Quality Measurement
In uncompetitive markets or in situations where
customers do not have a free choice, researchers should
use needs or wants as comparison standards
Time constraints
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CUSTOMER
1. Knowledge Gap
MANAGEMENT
Management definition
of these needs
2. Standards Gap
Translation into
design/delivery specs
4. Internal
Communications Gap
3. Delivery Gap
Execution of
design/delivery specs
4.
6. Interpretation Gap
5. Perceptions Gap
Customer perceptions
of service execution
Customer interpretation
of communications
7. Service Gap
Customer experience
relative to expectations
Slide 2007 by Christopher Lovelock and Jochen Wirtz
Chapter 14 - 14
(Table 14.3)
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(Table 14.3)
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(Table 14.3)
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Composition of FedExs
Service Quality IndexSQI
Failure Type
(Table 14.4)
Weighting
Number of
Daily
X
=
Factor
Incidents
Points
1
5
1
5
1
1
10
10
10
5
5
1
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100%
90%
80%
70%
60%
J
Month
Slide 2007 by Christopher Lovelock and Jochen Wirtz
Chapter 14 - 23
Pareto Chart
Separating the trivial from the important. Often, a majority of
problems is caused by a minority of causes (i.e. the 80/20 rule)
Blueprinting
Visualization of service delivery, identifying points where failures
are most likely to occur
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Six Sigma
Statistically, only 3.4 defects per million opportunities (1/294,000)
Has evolved from defect-reduction approach to an overall businessimprovement approach
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Arrive late
Oversized bags
Customers
Customers
Frontstage
Front-Stage
Personnel
Personnel
Procedures
Procedures
Delayed check-in
Gate agents
Aircraft late to
procedure
gate
cannot process
fast enough
Mechanical
Acceptance of late
Failures
passengers
Late/unavailable
Late pushback
airline crew
Delayed
Departures
Late food
service
Other Causes
Weather
Air traffic
Late cabin
cleaners
Poor announcement of
departures
Late baggage
Late fuel
Materials,
Materials,
Supplies
Supplies
Backstage
Personnel
Information
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15.3%
23.1%
15.4%
11.7%
23.1%
53.3%
15%
Late passengers
Waiting for pushback
Waiting for
fuelling
33.3%
33.3%
23.1%
Newark
19%
9.5%
8.7%
11.3%
4.9
%
Washington Natl.
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Blueprinting
Depicts sequence of front-stage interactions
experienced by customers plus supporting backstage
activities
Used to identify potential fall pointswhere failures are
most likely to appear
Shows how failures at one point may have a ripple
effect later
Managers can identify points which need urgent
attention
Important first step in preventing service quality problems
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Process Improvement
Process Design/Redesign
Analyze
Improve
Control
Establish measures to
maintain performance
Correct problems as needed
Refine problem/goal
Measure key steps/inputs
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Service Reliability
100%
Optimal Point of
Reliability: Cost of
Failure = Service
Recovery
B C
Small Cost,
Large Improvement
Satisfy Target
Customers through
Service Delivery as
Planned
D
Large Cost,
Small Improvement
Investment
Assumption: Customers are equally (or even more)
satisfied with the service recovery provided than with a
service that is delivered as planned.
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Generic Productivity
Improvement Strategies
Typical strategies to improve service productivity:
Careful control of costs at every step in process
Efforts to reduce wasteful use of materials or labor
Replacing workers by automated machines
Installing expert systems that allow paraprofessionals to take on
work previously performed by professionals who earn higher salaries
?
Slide 2007 by Christopher Lovelock and Jochen Wirtz
?
Services Marketing 6/E
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Credibility
Security
Access
Communication
Understanding the customer
Tangibles
Reliability
Responsiveness
Competence
Courtesy
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Fishbone diagram
Pareto chart
Blueprinting
TQM
ISO9000
Malcolm-Baldrige Model
Six sigma
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